Peter Chin, Managing Director, LASCO
LASCO Distributors Limited (LASD) has credited its 33 per cent increase in net profit for the three months ended June 2016 with continued growth in key product areas of its business.
For the three months ended June 2016, LASD posted $175.4 million in net profit, up from $132 million in the comparative period last year.
LASD noted that growth in product categories such as beverages and principal brand sales contributed to the growth in sales and profit during the review quarter.
Revenues for the quarter were $3.9 billion, which was $589.2 million or 18 per cent more than the prior year.
The company incurred an income tax expense of $29.9 million for the quarter, compared to nil in the prior year, due to the partial expiration of its Junior Market tax incentive.
“Management remains committed to containing operating costs, in spite of the challenging economic environment,” LASD said in its accompanying statement signed by Managing Director, Peter Chin.
In April of this year, LASD began distributing established brands produced by its sister company LASCO Manufacturing to existing export distributors across territories such as the Caribbean and North America. Structural changes and new investments in both human and infrastructural resources, including hiring two new export directors, were made in a bid to grow and develop the company’s export markets.
Operating expenses incurred in the period were $502.3 million, an increase of 14 per cent compared to last year. The increase was mainly due to expenditure needed to support the route to market of key brands.
At the same time, LASD’s total investment in property, plant and equipment at the end of the quarter stood at $1.1 billion, an increase of $346.83 million or 49 per cent from the prior year. Much of this growth was due to expenditure relating to the expansion of the company’s 100,000-square-feet expansion of storage space warehouse and logistics infrastructure, which is expected to be completed by December this year.
The additional space, said the company, will accommodate the increased inventory, which has been brought on by iCool and the company’s distribution arrangement for other leading local and international brands, including Salada and Unilever.